International Business Ventures EssayMeasuring a potential business venture has many aspects which the internationalmanager must be aware of in order to convey the correct information back to thedecision makers.
Being ignorant to any of the aspects can lead to a falserepresentation of the project, and hence an uninformed decision being passed. In order for a business to survive it must grow. For growth to be optimal,management must first be able to identify the most attractive prospective leads. The country as a whole, specifically geography, government, and financialaspects must be looked at in order to yield the best possible picture of themarket a company wishes to enter.Order now
Concentration should be placed on gatheringreliable facts that are backed up by more than one source. It is to be hopedthat after creating “a picture” of the market, management’s analysis of thepotential business venture and plan of action will be structured as to avoidlosses and to find the most profitable scenarios. The success of the multinational corporation lies on the shoulders of it’smanagement. International management and organization-design expert HenryMintzenberg says every CEO has three essential duties: direct supervision,development of the organization’s strategy, and management of the organization’sboundary conditions. Top management’s responsibility at and beyond theorganization’s boundaries is largely a communication responsibility; however, nocommonly accepted model exists for decision, execution, and assessment ofcommunication opportunities. Within even some of the largest and most venerableorganizations, the process used is haphazard and inconsistent.
The WyattCompany’s survey of communications professionals showed that just 58. 1 percentagreed that their organization’s communication objectives are linked to businessobjectives, and 83. 3 percent reported that their organizations conduct no formalreview of return on communications investment. CEOs must establish andreinforce an organization’s image in public by viewing each target public as aclient; by doing research, looking at trends, and talking to experts, a CEOfocuses on selling what the client wants to buy.
1Finding a country to conduct business in can be a very easy task depending on ifthe organization’s top management follows the advice of Mr. Mintzenberg. Theway a company normally discovers where to conduct research is through leads onpotential operations from outside sources. The selection of which leads toinvestigate becomes the difficult task.
After sifting through the leads andfinding the right ones to investigate management must formulate an internationalmarketing plan. This further helps management in locating potential markets fortheir products. The first step is to use secondary research to find out whatthe sales potential is in a given market. Asking the questions of need, demand,and support gives one a starting point for research. If we were a company thatsold pants we might want to ask the following questions.
Is there a need forpants? Is it cold enough there to wear pants? Do people that demand the pantshave money? These are the questions that one should ask of potential markets. Table 1-located at the end of the paper-shows the statistics that are needed fora general market picture. After gathering the information from the secondaryresearch, the picture of a potential market becomes more evident. However, tomake the picture clearer, one must conduct primary research. This researchoutlines the specifics of the potential market that directly pertain to theproduct. Robert Douglas’ book, Penetrating the International Market, addressesthe issue of locating potential markets in greater detail.
2 mg1Afterfinding a lead that contains profitable markets it is necessary to analyze theventure as a whole. The decisions of companies must be based on the facts ofreliable sources on all investments. To gather the information needed forinvestment projects, management must organize a competent feasibility team. Themembers of this team should be comprised of employees of the company, this is sothat the knowledge will stay within the company. If the resources are notavailable for an employee conducted study then outside consultants may be used,it may also be beneficial to use a combination of the two.
The first step inconducting a study is to design it by using project objectives as the base. During the second step the team must be staffed with people that have theability to solve problems in any situation. In the third step the team shouldbe properly placed and instructed. In the fourth and final step the product ofthe feasibility study should be properly communicated to the decision-makingmanagement.3 Table 2-located at the end of the paper-shows a general .